Unsustainability of Debt-Based Money

2022 ◽  
pp. 19-35

In addition to the problems caused by money being fiat, most modern money is moreover created not by governments but by the privately-owned banking systems as debt to themselves. This is not only grossly contrary to all traditions of natural justice, it is also unconstitutional. This problem has been understood and publicised by many politicians and writers over centuries, but it is still not widely known due to the financial and political power of the perpetrators. Since it is also the main cause of the continuing increase in inequality in all the rich countries, the “great reset” being advocated by those in charge of the present system is clearly not fit to become the new basis of the economic system.

This book addresses the central challenge facing rich countries: how to ensure that ordinary working families see their living standards and the prospects for their children improve rather than stagnate over time. It presents the findings from a comprehensive analysis of performance over recent decades across the rich countries of the OECD, in terms of real income growth around and below the middle. It relates this performance to overall economic growth, exploring why these often diverge substantially, and to the different models of capitalism or economic growth embedded in different countries. In-depth comparative and UK-focused analyses also focus on wages and the labour market and on the role of redistribution. Going beyond income, other indicators and aspects of living standards are also incorporated including non-monetary indicators of deprivation and financial strain, wealth and its distribution, and intergenerational mobility. By looking across this broad canvas, the book teases out how ordinary households have fared in recent decades in these critically important respects, and how that should inform the quest for inclusive growth and prosperity.

Loek Groot

In this study it is demonstrated that standard income inequality measures, such as the Lorenz curve and the Gini index, can successfully be applied to the distribution of Olympic success. Olympic success is distributed very unevenly, with the rich countries capturing a disproportionately higher share compared to their world population share, which suggests that the Olympic Games do not provide a level playing field. The actual distribution of Olympic success is compared with alternative hypothetical distributions, among which are chosen the distribution according to population shares, the welfare optimal distribution under the assumption of zero government expenditures, and the non-cooperating Nash-Cournot distribution. By way of conclusion, a device is proposed to make the distribution of Olympic success more equitable.

2021 ◽  
Tryphon Kollintzas ◽  
Dimitris Papageorgiou ◽  
Vanghelis Vassilatos

In this paper, we develop a two sector DSGE model with market and political power interactions. These interactions are motivated by the politico-economic systems of several South European countries, over the last half century. In these countries the state permits the existence of industries, typically related to the extended public sector, where firms and workers employed therein have market power (insiders), unlike other firms and workers in the economy (outsiders), as insiders, that dominate the major political parties, cooperate to influence government decisions, including those that pertain to the very existence of such a politico-economic system. Consistently with stylized facts of growth and the business cycle of these countries, the model predicts: (i) large negative deviations of per capita GDP from what these countries would have been capable of, if their politico-economic system was not characterized by the above mentioned frictions; and (ii) deeper and longer recessions in response to negative shocks, as their politico-economic system reacts so as to amplify these shocks.

2017 ◽  
Vol 9 (2) ◽  
pp. 189-207
AN Ras Try Astuti ◽  
Andi Faisal

Capitalism as an economic system that is implemented by most countries in the world today, in fact it gave birth to injustice and social inequalityare increasingly out of control. Social and economic inequalities are felt both between countries (developed and developing countries) as well as insociety itself (the rich minority and the poor majority). The condition is born from the practice of departing from faulty assumptions about the man. In capitalism the individual to own property released uncontrollably, causing a social imbalance. On the other hand, Islam never given a state model that guarantees fair distribution of ownership for all members of society, ie at the time of the Prophet Muhammad established the Islamic government in Medina. In Islam, the private ownership of property was also recognized but not absolute like capitalism. Islam also recognizes the forms of joint ownership for the benefit of society and acknowledges the ownership of the state that aims to create a balance and social justice.

2018 ◽  
Vol 5 (4) ◽  
pp. 127
Jan-Erik Lane

The new theme of abrupt climate change (“Hawking tipping point”) must be taken up by global coordination – the UNFCCC, IPCC and the G20. The only policy response is to reinforce the COP21 project, and start managing its quick implementation of decarbonisation. A more decisive climate change policy – no coal or charcoal, solar power parks, and possibly carbon capture – may not guarantee the goal of + 2 degrees Celsius, but it may help avoid climate chaos. Only global coordination can break through the resistance of markets in the rich countries and governments in the Third World together with vibrant civil society. The large COP21 Secretariat must become a management agency for rapid decarbonisation with support from other global bodies (WB, IMF) and the G20.

1995 ◽  
Vol 43 (1) ◽  
pp. 11-63
Georgina Murray ◽  
Jacques Bierling ◽  
Malcolm Alexander
The Rich ◽  

Luke Mayville

This chapter turns to the question of how, precisely, John Adams understood wealth to translate into political influence. It shows that Adams was a careful student of the Scottish Enlightenment. More than any other Founding Era American, he engaged with the long tradition of thought that emphasized the psychological bases of social and political power. The fruit of his efforts was the series of essays entitled Discourses on Davila, a work that Adams would describe as the fourth and final volume of his Defence. The chapter draws from Discourses on Davila and other writings an understanding of oligarchic power that traces the political power of wealth not to the capacity of the rich to buy influence but instead to public admiration and sympathy for the rich.

Vito Tanzi

Policies can aim at results that are good for the whole population or policies can be directed at special groups. General policies may help overall but hurt some subsectors, for example free trade that is now under attack because it has hurt some sectors even though it has promoted a higher growth. Economic theory has increasingly moved from policies that help overall to policies that help or hurt particular groups (the elite, the rich, industrial workers). Policies are frequently promoted by the groups that have the greatest political power, often accompaniedby economic power. Policies have become progressively more complex and less easy to understand for average citizens. Smaller groups, especially those with greater economic power find it easier to organize and to push their agenda and policy responds to such pressure. Various kinds of what could be called “termites” have entered the policymaking process. They include the length and the complexity of many laws, making them less transparent to normal citizens and easier to manipulate.

William Godwin

Contrasted with the mischiefs of the present system, as consisting—1. In a sense of dependence. 2. In the perpetual spectacle of injustice, leading men astray in their desires—and perverting the integrity of their judgments—the rich are the true pensioners.—3. In the discouragement of intellectual attainments.—4....

Sign in / Sign up

Export Citation Format

Share Document